International Wires from US to Argentina. Risk of Account Closure?

[autoluminescent]

In order to pay my Argentine taxes I'll need to wire myself around $5k per month - has anyone had any issues with US banks closing your account for multiple international wires? I'm a bit worried Chase will close my account (I have both a personal and business account there). Would using a third-party app like Payoneer be a smarter way to avoid any potential account closure? ie. send the $5k as an ACH transfer to my Payoneer account under my name, then Payoneer to my account at Santander.

 

[LuckyLuke]

I had my IRA threaten to close my account last year once they found out I was here. I took the funds out but they still haven't closed it. So far so good on the bank account, but I've only done one large wire. I regularly do WU transfers from my bank account, but I don't think they really know the destination.

Regarding your taxes, you sure you are talking about $5,000 USD monthly?? That sounds like an insane amount. Most people owe taxes in this country because they earn pesos in this country, which usually limits the amount of dollars they need to wire in. There are many many methods to bringing in funds here without doing an international wire. I would suggest starting with Saldo.com.ar and having a look at the various apps they work with.

 

[autoluminescent]

Oof, yeah it has been a huge fear of mine but I've been here 3 years so far without any major banking issues. I normally do the same, wire my living expenses via Western Union but since I'm a full-time resident ARCA has come for their share. I run a US-based LLC and made more last year than the Monotributo limit so I'm stuck under the Regimen General. Being a US citizen living in Argentina means my combined tax rate is over 40% thanks to no tax treaty

 

[ArgentinaVet]

Oof, yeah it has been a huge fear of mine but I've been here 3 years so far without any major banking issues. I normally do the same, wire my living expenses via Western Union but since I'm a full-time resident ARCA has come for their share. I run a US-based LLC and made more last year than the Monotributo limit so I'm stuck under the Regimen General. Being a US citizen living in Argentina means my combined tax rate is over 40% thanks to no tax treaty

I hope you are utilizing the Foreign Earned Income Exclusion if you are a legal tax resident of Argentina. This entitles you to a $120k USD + write off on your US taxes for earned income.

 

[autoluminescent]

I hope you are utilizing the Foreign Earned Income Exclusion if you are a legal tax resident of Argentina. This entitles you to a $120k USD + write off on your US taxes for earned income.

Yes I do, but I still have to pay Self Employment tax of 15.3% to the US which isn't discounted here in ARG..

 

[ArgentinaVet]

Yes I do, but I still have to pay Self Employment tax of 15.3% to the US which isn't discounted here in ARG..

I suggest you get yourself a more creative and knowledgeable accountant. Paying self employment taxes in Argentina is legitimate cause for not paying the US version.

 

[LuckyLuke]

I'm still struggling to understand how ARCA came to be aware of the earnings in your LLC to the tune of a $60,000 annual tax bill. That's a crazy situation to be in...

 

[autoluminescent]

I'm still struggling to understand how ARCA came to be aware of the earnings in your LLC to the tune of a $60,000 annual tax bill. That's a crazy situation to be in...

Noo no, my tax bill was like $23k here, but I am paying it off in monthly installments.

 

[autoluminescent]

I suggest you get yourself a more creative and knowledgeable accountant. Paying self employment taxes in Argentina is legitimate cause for not paying the US version.

I've spoken to at least 5 different accountants here in ARG and several more in the US. No such tax treaty exists between ARG/ US, unfortunately. Self-employment tax is essentially my social security contribution and as a US citizen, if you are self-employed, you have to pay that tax unless you live in a country that has a totalization agreement with the US. Argentina is not one of those countries.

 

[dlish]

Noo no, my tax bill was like $23k here, but I am paying it off in monthly installments.

But how did that happen? You said “since I'm a full-time resident ARCA has come for their share” what does that mean exactly - they reached out to you?! They knew you were making money overseas, and how much? How? I’ve never heard of that happening to anyone. What happened